Silver Standard Resources (NASDAQ:SSRM – Get Free Report) and Avalon Rare Metals (OTCMKTS:AVLNF – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Insider & Institutional Ownership
68.3% of Silver Standard Resources shares are held by institutional investors. 0.5% of Silver Standard Resources shares are held by company insiders. Comparatively, 2.4% of Avalon Rare Metals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Silver Standard Resources and Avalon Rare Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silver Standard Resources | 15.36% | 6.46% | 4.64% |
| Avalon Rare Metals | -5,445.83% | -4.41% | -4.05% |
Risk and Volatility
Analyst Ratings
This is a summary of recent ratings for Silver Standard Resources and Avalon Rare Metals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silver Standard Resources | 1 | 6 | 3 | 2 | 2.50 |
| Avalon Rare Metals | 0 | 0 | 0 | 0 | 0.00 |
Silver Standard Resources presently has a consensus price target of $20.60, indicating a potential downside of 21.55%. Given Silver Standard Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe Silver Standard Resources is more favorable than Avalon Rare Metals.
Valuation & Earnings
This table compares Silver Standard Resources and Avalon Rare Metals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silver Standard Resources | $995.62 million | 5.35 | -$261.28 million | $1.04 | 25.25 |
| Avalon Rare Metals | $40,000.00 | 1,241.87 | -$3.72 million | N/A | N/A |
Avalon Rare Metals has lower revenue, but higher earnings than Silver Standard Resources.
Summary
Silver Standard Resources beats Avalon Rare Metals on 9 of the 13 factors compared between the two stocks.
About Silver Standard Resources
SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.
About Avalon Rare Metals
Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.
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